Employers use restrictive covenants (also known as post-termination restrictions) to limit what an employee can do after they leave an organisation. For example, typical scenarios include preventing a salesperson from getting in touch with clients for a fixed period of time, or preventing a software engineer from taking proprietary programming code to their new employer.
The consequences of breaching a restrictive covenant can be expensive and time-consuming, so the best approach is to understand it fully before agreeing. Unfortunately, the law surrounding restrictive covenants is complex and constantly evolving, so talking to a solicitor with expertise in this specialised field will help you to identify the full scope of its implications.
HOW WE HELP YOU
- Our employment experts have extensive experience in both the employee and employer side of restrictive covenants.
- If you feel a restrictive covenant is unreasonable or excessive, we may be able to negotiate a fairer one.
- We can also help to resolve disputes that arise out of restrictive covenant breaches, particularly in limiting your financial liability.
IT'S GOOD TO BEAR IN MIND
- Employment contracts often include restrictive covenants, so read your contract carefully before signing.
- Unreasonable or excessive restrictions should be negotiated straight away. Don’t leave it until you are ready to leave the employer.
- Remind yourself about any restrictions prior to seeking new employment. It’s worth contacting your solicitor about any recent changes to the law that may affect you.